Initial Public Offering (IPO)

[aiman27]

next ipo sunway

 

[couchcorp]

next ipo sunway

Sunway Bhd’s shareholders will receive special cash dividend of between 22.0 sen to 25.0 sen and a 1-for-10 distribution-in-specie of free soon-to-be-listed Sunway Construction Group Bhd’s (SCG) shares, according to a circular issued by Sunway to its shareholders recently.

Based on the illustration provided in the Group’s circular to its shareholders, MIDF Research envisaged the retail initial public offering (IPO) price of SGC to be RM1.10/share. According to the circular which also contains notice of extraordinary general meeting on April 20, Sunway proposes to distribute at least 156 million shares of 20 sen each to its entitled shareholders.

“The final retail share price will be determined later and be subjected to agreement between directors of SCG, shareholders disposing their shares and the joint global coordinators,” MIDF Research pointed out. “Upon completion of the corporate exercise, SCG will have 1.293 billion shares listed on Bursa Malaysia. Assuming the IPO Price of RM1.10, SCG’s market cap will be RM1.42 billion.”

Aside from the 156 million shares sets aside for Sunway’s shareholders, the remaining 415.3 million shares will be offered for sale to institutional and selected/Bumiputera investors (344.2 million) as well as eligible directors, employees and the Malaysian public (71.1 million), according to the Sunway’s circular.

MIDF Research said it is positive on the IPO price of RM1.10 as it is valuing SCG at historical PE (price-to-earnings ratio) of 12.4x, which is slightly higher than the current Sunway’s HPE of 12.0x.

The 12.4x HPE is close to mid-cap construction companies historical PE of 12.9x, according to the research house. Post corporate exercise, Sunway’s stake in SCG will be reduced to 51.0%.

“We are positive on the exercise as it will allow Sunway’s shareholders to receive dividends in range from 22.0 sen to 25.0 sen (indicative),” projected MIDF Research. “The exercise will also allow Sunway’s shareholders to partially monetize the value of its construction arm while continuing to benefit from prospects of the strong earnings of its construction business.”

MIDF Research has adjusted upward Sunway’s target price to RM3.97 from RM3.72 previously by taking into account the minimum dividend of 22 sen and the 0.1 shares in SCG worth 11 sen. Additionally, the revised target price also included a lower post-SCG IPO share price for Sunway (after the ex-date for the entitlement of dividend and distribution in-specie) of RM3.64.

“Our rating has also been revised to TRADING BUY (from BUY) as the announced amount of special cash dividend and the illustrative IPO price for SCGs appear to be attractive to investors,” added MIDF Research.

At market close today, Sunway was down 4 sen to RM3.74 with 874,800 shares traded.

Good news or bad news ye for SunCon??

 

[jibam]

sedania.. ipo RM 0.38.. lanie price ka RM 0.48... settle... take profit

 

[chel_fi82]

mcm best aje main saham ni..

 

[2bz4money]

sedania.. ipo RM 0.38.. lanie price ka RM 0.48... settle... take profit

wowowow popit 26%, rezeki ramadan tu..terbangkit balik mood utk berIPO setelah berhibernasi sekajap dgn UT dan property

 

[jibam]

wowowow popit 26%, rezeki ramadan tu..terbangkit balik mood utk berIPO setelah berhibernasi sekajap dgn UT dan property

xinwha pun masyuk gak.. tapi aku x dpt ipo tu.. tgk aja la...

 

[newbies kacang]

park dulu tuan2.. hehe

 

[newbies kacang]

TT nak tnya ni.. kalo nk bukak cds akaun mmg kena pergi bank eh utk bukak??.. xleh apply via on9?.. huhu..

 

[eligator]

TT nak tnya ni.. kalo nk bukak cds akaun mmg kena pergi bank eh utk bukak??.. xleh apply via on9?.. huhu..

g jela bank investment...mudah je..

 

[scorpeon]

OMG i thought we'll be discussing new IPO released or something like that but I found a lot of easy data here.